Strategy, the company well-known for its big Bitcoin bets and formerly called MicroStrategy, is now facing a new class action lawsuit.

A purported class action lawsuit, recently filed in the U.S. District Court for the Eastern District of Virginia, accuses Strategy of misleading investors about its aggressive bitcoin investment strategy.

A new class action lawsuit has been filed against Strategy, well-known for its massive Bitcoin bets and formerly known as MicroStrategy (Nasdaq:MSTR), over its alleged bitcoin investment deception.

The lawsuit, filed at the U.S. District Court in the Eastern District of Virginia, claims that Strategy misled investors about its aggressive bitcoin treasury strategy.

The legal action names several top executives, including Executive Chairman Michael Saylor, CEO Phong Le, and CFO Andrew Kang, as defendants. It alleges that Strategy failed to fully disclose the risks and potential losses associated with its large-scale bitcoin holdings.

Lawsuit Accuses Strategy, Saylor of Misleading Investors on Bitcoin Risks

The plaintiff, Anas Hamza, alleges that Strategy provided false or misleading information about the profitability and risk of its bitcoin-centric treasury approach. Investors who purchased shares between April 30, 2024, and April 4, 2025, may be covered under the proposed class.

Hamza contends that Strategy neglected to reveal key financial risks related to bitcoin volatility and changes in accounting standards. Specifically, the complaint refers to Accounting Standards Update No. 2023-08. This update affects how crypto assets are treated in financial reports and could have significantly influenced investors’ decisions if fully disclosed.

Related: Strategy (MSTR) Accounts for 77% of ~700K Bitcoin Held by Public Companies

The lawsuit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, along with Rule 10b-5. These are critical regulations designed to protect investors from fraudulent market practices. While the damages remain unspecified in the filing, the plaintiff seeks financial compensation, legal fees, and additional relief for any affected shareholders.

Strategy Buys 7,390 More BTC Despite Legal Challenge, Holdings Top 576K

Despite the legal scrutiny, Strategy has continued to expand its bitcoin holdings. Between May 12 and May 18, 2025, the company purchased an additional 7,390 BTC. The total investment amounted to $764.9 million, at an average price of $103,498 per coin.

Consequently, as of May 18, Strategy holds 576,230 BTC. The company has spent approximately $40.18 billion on these acquisitions, with an average price of $69,726 per bitcoin.

Strategy has acquired 7,390 BTC for ~$764.9 million at ~$103,498 per bitcoin and has achieved BTC Yield of 16.3% YTD 2025. As of 5/18/2025, we hodl 576,230 $BTC acquired for ~$40.18 billion at ~$69,726 per bitcoin. $MSTR $STRK $STRFhttps://t.co/woIBO11Hz9

Strategy to Defend Lawsuit; Can’t Estimate Potential Loss, SEC Filing Shows

Strategy disclosed the lawsuit in a May 19 SEC filing. The company affirmed its intention to defend vigorously against the claims.

Related: Saylor’s Relentless Strategy: Buys $1.9B More Bitcoin, Now Holds 2.5% of All BTC

However, Strategy also admitted it could not estimate potential losses or the case’s outcome at this point.

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